(Appendix) Record manufacturing costs using JIT costing (Learning Objective 6) Refer to the Mission Data Set. Shutterbug produces digital cameras. Suppose Shutterbug’s standard cost per camera is $24 for materials and $32 for conversion costs. The following data apply to July production:

Shutterbug uses JIT costing.
Requirements 1. Prepare summary journal entries for July, including the entry to close the Conversion Costs account.
2. The beginning balance of Finished Goods Inventory was $100,000. Use a T- account to find the ending balance of Finished Goods Inventory.

Transcribed Image Text:

Materials purchased.......... Conversion costs incurred. Number of cameras completed.......... Number of cameras sold .............. $6,500,000 $7,420,000 200,000 cameras 196,000 cameras